Hanoi (VNA) – Environment, society, and governance (ESG) is an approach that businesses need to take in sustainable development as Vietnam promotes green growth and targets net zero emissions, according to experts.
ESG are factors with the strongest influence on businesses currently, said Nguyen Thi Thanh Nga, an expert from the Department of Science, Education and National Resources under the Ministry of Planning and Investment. She spoke at a conference themed “ESG - The Key to Sustainable Development” that was organised by Vietnam Investment Review on November 29.
Since 99% of Vietnamese enterprises are small and medium-sized enterprises, she proposed promoting the creation of value chains linking FDI enterprises with domestic SMEs to achieve the Net Zero goal.
In addition, energy transition is also an important issue for Vietnam in the future, she said. It is necessary to promote efficient and sustainable energy use, save energy, and reduce consumption in sustainable development. That is also promoting sustainable, green and ESG development for businesses, she said.
Meanwhile, Patrick Haverman, deputy resident representative of the United Nations Development Program (UNDP) in Vietnam, said that ESG consideration in private investments is evolving from a risk management practice to a driver of innovation and new opportunities that create long-term value for business and society.
Companies and investors are increasingly working together to address major global challenges, he said, adding that promoting ESG adoption throughout the investment value chain can encourage greater private investment in sustainable development, resulting in a greater impact.
Noting that there is only 28 years for Vietnam to achieve the net-zero emission goal, the country must take action immediately, he stressed.
Haverman pointed out that the various actors in the investment value chain, including investors, banks, and companies, have been increasing ESG and sustainability information in their reporting processes. This will be important to create an enabling environment for sustainability and integrated reporting to flourish.
As always, the UNDP and the UN stand ready to support the Vietnamese government in the next transition to a good governance, sustainable development, and a circular and climate-resilient economy where no one is left behind, he said.
Hoang Thi Thanh Thuy, head of the Coordination Committee for Sustainable Development at TH Group, said that the Vietnamese agricultural sector has grown tremendously, with the strong development of many enterprises in the agricultural sector, including TH Group.
Organic fresh milk - a product of TH True Milk
To build a sustainable ecosystem, since 2008, TH Group has applied green technologies with a large amount of grey matter such as digital technology, cloud technology, AI, and governance science to achieve the best efficiency in using resources. TH Group’s production model is a closed circular economic model: all organic matter and organic waste from livestock farms are collected and processed into biological buffers in service of the farm and used to make organic fertilisers. Animal husbandry wastewater is used to improve arable land and returned to the natural environment after being treated up to standards.
TH has also invested in rooftop solar energy, which both produces electricity and reduces heat absorption for the roof of the barn, increases animal welfare, and reduces heat stress for cattle in summer, she added.
Nguyen Thi Ngoc Hue, Director of Corporate Communication & External Affairs at AEON Vietnam, said AEON Vietnam annually conducted activities to connect, accompany and support Vietnamese businesses to promote and introduce local products to consumers. The firm also supported local suppliers to meet export standards to international markets, especially Japan, through AEON's retail system. By the end of 2022, the proportion of domestic goods in AEON Vietnam's retail system would reach 80%.
With persistent and consistent efforts over the years, AEON Vietnam has spread sustainable consumption habits to millions of Vietnamese consumers and will continue to accompany partners to promote green consumption, contributing to building a sustainable Vietnamese retail market, she added./.
